Q2)
What are the objectives of cost Accounting? Discuss the procedure of

installation of a costing system in an
organisation.

Q3) What are
the objectives of material control? Discuss various methods of material
control.

Q4) Why is it
necessary to reconcile the profits as shown by the Cost and Financial Accounts?
Explain the reasons for the difference in profits shown by the two set of
accounts.

Q5)
Differentiate between a budget, budgeting and budgetary control. Discuss

various pre-requisites of implementing a
budgetary control system in an

organisation.

Q6)
A company produces 24,000 units. The cost sheet gives the following information:

Rs.

Direct material 1,20,000

Direct wages 84,000

Variable overheads 48,000

Semi-variable overheads 28,000

Fixed overheads 80,000

Total cost 3,60,000

The product is sold at Rs. 20 per unit.

The management proposes to increase the
production by 3,000 units for sale

in the foreign market. It is estimated that
the semi-variable overheads will

increase by Rs. 1,000. But the product will
be sold at Rs 14 per unit in the

foreign market. However no additional
capital expenditure will be incurred.

The management seeks your advice as a cost
accountant. What will be your

advice to the management of the company?

Q7) Accompany
has furnished the following information in relation to the production of 1,000
units of compact discs manufactured by it during 2010:

Rs.

Cost of materials 1,00,000

Direct wages
70,000

Cost of power and consumable stores (20%
fixed) 15,000

Factory indirect wages (40% fixed) 20,000

Cost of lighting in the factory (fixed) 10,000

Office expenses (fixed)
30,000

Selling expenses (70% variable) 50,000

Depreciation of plant under straight line
method 10,000

The entire output was sold at Rs. 350 per
unit.

For the year 201 1, it is estimated that
the production will be increased by 50% by utilising the spare capacity and the
rates for materials and direct wages will increase by l0% and 20o/o
respectively.

Prepare Cost sheet for the year 2010
showing the cost per unit and a statement showing estimated cost and profit for
the year 2011, assuming that all the goods produced would be sold at a price of
Rs. 340 per unit.